No govt financing, sovereign-guaranteed loans for new PIA aircraft: PM’s aide
Adviser to the Prime Minister on Finance Khurram Schehzad clarified on Sunday that the government was not buying any aircraft for the Pakistan International Airlines (PIA), which was privatised through an auction in December last year. “The government is neither buying aircraft for a privatised PIA, nor has it announced any sovereign guarantee of taxpayer-funded […]
The Pakistani government is not purchasing any aircraft for Pakistan International Airlines (PIA), which was privatised through an auction in December last year. According to Adviser to the Prime Minister on Finance Khurram Schehzad, the government has not announced any sovereign guarantee of taxpayer-funded loan for buying new aircraft for PIA.
Schehzad's clarification comes after claims on social media that a minister was arranging and negotiating sovereign-linked financing for new jets. These claims followed a meeting between Finance Minister Muhammad Aurangzeb and Chair of the US Export-Import (Exim) Bank John Jovanovich in New York, where they discussed funding opportunities for procuring an aircraft for PIA. According to the finance ministry, Aurangzeb shared PIA's interest in Boeing's 787 Dreamliners and sought support for a financing package.
The US Exim Bank's mandate is to support US exports and jobs, and it provides financing support to foreign purchasers of US-manufactured aircraft, including airlines, through established financing structures. Schehzad pointed out that the bank's support would be for a private purchase of Boeing aircraft, not a government-backed loan.
Brief written by urgent.news from Daily Times, Dawn, Dawn - Pakistan — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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